Economy

China's growth projected to be 10.5% in 2010, 9.6% in 2011

(Xinhua)
Updated: 2010-10-06 22:02

WASHINGTON - China's growth is projected to average 10.5 percent in 2010 and 9.6 percent in 2011, mainly driven by domestic demand, according to a report released by the International Monetary Fund (IMF) on Wednesday.

The Washington-based international institution made the projection in its biannual World Economic Outlook (WEO) before the IMF and its sibling institution World Bank annual meeting to be held this weekend.

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"The slight moderation in recent activity is expected to continue through 2011 in light of tighter quantitative limits on credit growth, measures to cool off the property market and limit bank exposure to this, and the planned unwinding of fiscal stimulus in 2011," IMF said in the report.

The report said this year's sustained growth in retail sales and industrial production confirms that private sector activity has advanced beyond the lift from government stimulus.

"On average over 2010-11, private domestic demand is poised to contribute two-thirds of near term growth, and government activity about one third, whereas the contribution from net exports will be close to zero," said the report.

Despite the robustness in domestic demand, the pickup in inflation in 2010 reflected mainly higher food prices rather than core inflation, the report said.